With a recent strategic acquisition, American Rheinmetall has consolidated its market-leading position in the US
As a division of the German automotive and arms manufacturer, Rheinmetall, American Rheinmetall Vehicles (ARV) was established in 2019 to advance the company’s US presence by focusing on the ground vehicle market. Headquartered in Sterling Heights, Michigan, ARV has grown into a trusted leader in the design, development, and production of advanced tracked and wheeled vehicles and components – now even more so thanks to its strategic acquisition and integration in late 2024 of the diverse, exceptional company Loc Performance Products (Loc). Together, the two companies are now operating as American Rheinmetall (AR).
Delivering cutting-edge vehicle systems, mechanical systems, fabricated structures, armored products, rubber solutions, and track systems for both defense and commercial markets, the combined company plays a key role in supporting the US military’s modernization efforts. The company is a full-service vehicle Original Equipment Manufacturer (OEM) and Tier 1 supplier. It has an extra advantage, because it can leverage Rheinmetall’s extensive global portfolio to adapt and integrate proven, combat-tested platforms to meet specific American requirements.
Rheinmetall’s acquisition of Loc has substantially strengthened American Rheinmetall’s market position across North America. As an established supplier to the US Government and an OEM for most military ground vehicle track systems in the US, Loc expands American Rheinmetall’s portfolio and substantially boosts its manufacturing capabilities thanks to its more than 1.7M sq ft of advanced manufacturing space across four facilities.
We’re joined by Matthew Warnick, CEO, and Jason Atkinson, COO and former CEO of Loc, to learn more about the business and the recent acquisition. “I was the first employee at American Rheinmetall, which was created to leverage opportunities for ground combat vehicles and tactical wheel vehicles, with most of our efforts focused on the development of the Lynx XM30 Combat Vehicle,” Matthew begins. “Over time, we built a core team and started investing in both products and technologies, later winning our first contract for the US Army’s XM30 program. We’ve seen tremendous growth, going from 20-to-30 employees to around 300, and then with the recent acquisition of Loc to around 1400.”
Elaborating on Loc’s history, Jason adds: “Loc was established in Plymouth, Michigan, in 1971, but really penetrated the defense market throughout the 1990s. We’ve been manufacturing products for pretty much every ground combat vehicle since then and we ‘cut our teeth’ in suspension and driveline. Loc had been growing organically for several years but also acquired a large fabrication shop in 2017 and later acquired another company in 2019 to bolster our long-range capabilities with high precision machining and long-range missile systems.
“Fast forward to 2024 when we were working with American Rheinmetall on its Lynx XM30 concept design platform, and we sparked conversations that ultimately led to American Rheinmetall acquiring Loc to add manufacturing capabilities – and more – to its already proven platforms. Today, we organize the integrated business across three main segments: prime work encompasses our direct work for the US Government, Tier 1 refers to the sub-assemblies and structures primarily from the legacy Loc business, and commercial focuses on products for the agricultural and industrial markets.
“One thing that stood out to me throughout the acquisition process was the company’s approach and willingness to invest in research and development,” he shares. “We’re currently working on several projects that support future combat platforms as well as current systems. We’re working on lightweighting technology across multiple platforms, for instance, and identifying new technologies to improve ride quality. On the commercial side, we’re developing new undercarriage technology and rubber track compounds.”
The integration of Loc into American Rheinmetall’s operations not only strengthens the company’s market position in North America amid competition for high-volume major orders in the US but also combines design and manufacturing expertise. “American Rheinmetall was really a design house, but Loc has bolstered our manufacturing capabilities with an impressive 1.7M sq ft of manufacturing space across four facilities alongside refined processes and qualifications,” Matthew says.
“We have a fully deployed quality system in place, and our ERP system is consistent across all facilities to enable greater control from both a quality and supply chain perspective,” Jason confirms. “Our fabrication facility includes some of the largest brake presses in North America, which allow us to form armored structures up to 50 feet in length. Our overall manufacturing capabilities perfectly complement American Rheinmetall’s design capabilities and existing platforms to create a truly unique global organization.” 
Delving into American Rheinmetall’s current and ongoing projects, we’re keen to hear more about the XM30 program. “We’re very pleased with the progress we’re making on the XM30 program,” Matthew states. “Having completed the preliminary design review and ordered materials with long lead times, we’re now preparing for the critical design review and prototype build. From a design perspective, we’re pushing the envelope in terms of capabilities to include hybrid propulsion, significant power and weight growth potential, and modularity based on a Modular Open Systems Approach to the vehicle architecture.
“We’ve put a lot of effort into leveraging the best elements of our portfolio and we feel confident in the features and attributes the XM30 will provide soldiers. We’ve modified our initial design by implementing new technologies within comprehensive open architecture, which is the critical aspect that makes the XM30 a generational platform. The platform’s open architecture enables users to add other attributes, sensor systems, or capabilities to the vehicle to keep pace with modern threats on the battlefield.”
American Rheinmetall is also working on the Common Tactical Truck (CTT) program for the US Army in partnership with GM Defense. The program will enable the US Army to replace legacy vehicles like the Palletized Load System (PLS), and the Heavy Expanded Mobility Tactical Truck (HEMTT). “Logistics wins wars, and the CTT program will increase the Army’s critical ability to move personnel, equipment, and supplies on the battlefield,” Matthew explains.
“The program will re-equip the US Army’s heavy tactical wheel vehicle fleet with vehicles that not only ease the logistics burden but also include commercial attributes that deliver best-in-class capabilities in a cost affordable manner. Our HX3 CTT solution will include open architecture to enable and support autonomous operation. We’re currently in our final program review, but we’re confident in our design, so we’re already thinking about production by developing facility layouts and establishing comprehensive digital manufacturing tools to support future deliveries.”
American Rheinmetall’s impressive manufacturing operations are enhanced by the company’s approach and investment in new technologies. “Automation is key to any successful manufacturing operation,” Jason states. “Automation is a major aspect of the XM30 program and we’re currently connecting the design side from a digital provisioning perspective. We’ve integrated digital engineering tools to provide full digital overview of our machining and welding centers, and we can even provide the US Army with direct access into our digital factory, enabling them to check progress in real time.”
With our conversation ending, Matthew and Jason turn their attention to what’s next for American Rheinmetall. “The acquisition is still relatively new, so 2025 will see us focus on integration while maintaining service continuity for our existing customers,” Jason shares. “The alignment of cultures has come naturally to both businesses, as we understand one another’s products and we’re both laser-focused on delivering high-quality products. While we’ve already made tremendous progress, as we move through the year, we’ll turn our attention to expanding our collective capabilities and advancing our investment plan across all three areas of the business. We have strong growth ambitions, part of which is moving up the value stream associated with our products, especially on the commercial side.”
Matthew concludes: “We’re planning to invest around $50 million in capital equipment to expand capabilities and support our growth moving forward. We’re integrating six additional high-precision, five-axis machining centers to support long-range weapon systems, for instance, as well as investing heavily in systems to enhance our productivity and throughput. We’re excited to move into production with some of our prime work and continue to diversify the business across our core segments and ever-growing customer base. Paired with Rheinmetall’s global position, our products are well positioned in the market and will surely continue to thrive.”